The value of your property is determined by your net operating income (NOI). That number is the result of subtracting the operating expenses from the operating income. There may also be an opportunity with the present mortgage. The relationship between your NOI and the cost of a new mortgage may present a refinancing opportunity.
Re: The […]

The obvious answer is no. The definition of market rent is: “The amount the owner could charge and obtain for the lease of a property in the current economic circumstances.” Why would anyone take less income and reduce the value of their property?
On the other hand, there are owners who have tax issues if they […]

Like any other operating business, commercial real estate value is determined by:

Current yield
The quality of the current yield
The outlook for future yield

While many people believe jobs create commercial real estate value, jobs are in fact the driving force that sets the foundation for creating commercial real estate value. Many people believe that real estate’s benchmark […]

If you’ve been reading our NIPI™ updates, you’ll see we’ve taken a very conservative approach toward recommending capitalization rates. There are many issues that may or may not affect real estate values. A weak economy will lower income property values.
Our economy can’t go up in a straight line or consolidate and only go sideways. Why […]